Apple and other tech stock futures fell more than 1% on Wednesday as Microsoft led declines in tech stocks after it forecast current-quarter cloud revenue below Wall Street estimates.
Microsoft Corp shares fell 2.1% in premarket trading after it warned that growth in its cloud business, which helped the company meet analysts’ expectations in the second quarter, could stall, while its PC unit continues to struggle.
MacDailyNews Take: Apple is certainly not Microsoft: Apple’s indomitable Mac keeps gaining market share at the expense of x86-based vendors – January 19, 2023
Other large growth stocks including Amazon.com Inc, Tesla Inc, Apple Inc, and Alphabet Inc also dropped between 1% and 2%.
“Microsoft is dealing with a marked slowdown in personal computing revenues, which reflects the incredibly challenging consumer environment,” Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown wrote in a client note.
“Despite renewed hope that interest rate hikes might be slowed and peak inflation coming into view, buying a new laptop and the software that comes with it is simply not a priority for many people right now.”
MacDailyNews Take: Microsoft is certainly not Apple: IDC: Traditional PCs declined precipitously in 2022; Apple Mac sales grew – January 11, 2023
We’ve been covering Apple in these pages for over 20 years and have seen Apple perform through multiple recessions.
It’s the non-Apple tech companies that are most at risk during a consumer spending slowdown since their consumers have less, and/or are less willing, to spend. Apple will be just fine, even in a recession. And, during any stock price declines, Apple’s massive buyback plan will be even more effective in retiring shares and providing support for shareholders. – MacDailyNews, October 4, 2022
Apple’s consumer demographics suggest that it could be resilient, even amid inflation. Plus, a very strong profit margin gives the company plenty of flexibility to absorb rising prices should the need arise. – MacDailyNews, November, 11, 2022
The most inflation- and recession-resistant big tech company is Apple, thanks to its superior customer demographics. – MacDailyNews, October 27, 2022
Apple iPhone customers are the most recession-proof smartphone buyers. — MacDailyNews, September 7, 2022
The same goes for Mac, iPad, Apple Watch, and Apple Services customers in personal computers, tablet computers, smartwatches, and subscriptions, respectively. – MacDailyNews, October 13, 2022
When your money becomes a greater concern, you want to spend it wisely… If it’s not an iPhone, it’s not an iPhone. Further, if it’s not an iPhone Pro, it’s not an iPhone Pro. – MacDailyNews, October 27, 2022
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“We’ve been covering Apple in these pages for over 20 years and have seen Apple perform through multiple recessions.”
MDN Take, TRUE, but no one had to endure a Resident of the United States Joe Biden Recession!
2007 to 2009+ severe Recession almost a Depression, with the worst Stock market crash (2008) since 1929 engineered by G. W. Bush and the Republicans with their 2 wars, ill-advised tax cut and lack of oversight of the banking and markets system leading to the subprime mortgage crisis and the risky Wall Street behavior with multiple major Wall Street firms (eg Lehman Brothers – 4th largest bank in the country)
defaulting?
Perhaps you are too young to have endured that huge chunk of misery or…
how soon we forget….
it’s convent for them to forget and much mores satisfying to play the victim. Their simple minds feel better that way.